Indian J.Sci.Res.

7 (1): 136-144, 2014 ISSN: 0976-2876 (Print)

ISSN: 2250-0138(Online)

UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT

STRATEGIES IN AHVAZ TUBING COMPANY

TAHEREH SALEHIa1 AND FATEMEH KARIMIb

a
Sama Technical and Vocational Training College, Islamic Azad University, Ahvaz Branch, Ahvaz, Iran
b
Department of Environmental Science, College of agriculture and natural resources, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran

ABSTRACT
The present study is an attempt that has been made for more and more empowerment of HSE system in Ahvaz Tubing
Company. In this study, for codification and implementation of legal requirements of HSE in the company and also for
presentation of management solutions and codification of proper strategies, measures have been taken to indentify and analyze
internal factors (strengths and weaknesses) and external factors (opportunities and threats) of the company. Subsequently, by
means of the SWOT model, the opposition of all internal and external factors took place for extraction and codification of proper
strategies in order to enhance opportunities and strengths and analyze the weaknesses and threats. After codification of strategies,
utilization of QSPM matrix is another attempt which in this study has been made for prioritization of selected strategies.
KEYWORDS: HSE system- management strategies- strengths, weaknesses, opportunities, threats- SWOT model

Management system of health, safety and
environment is a manifestation of full adherence of the
policies of an organization to the world policy of
sustainable development and the environment expresses
the central role of humans in the issue of safety and
necessity of preservation of his/her livelihood and health
in interaction with the workplace and the environment. By
establishment of management system of health, safety and
environment and comprehensive compliance with its
principles and elements we will witness a reduction in
costs that is imposed on the industry due to emergence of
occupational diseases, environmental events and damages
[5].
As at present there is no world standard
regarding management of integrated system of HSE, thus
Ahvaz Tubing Company, like different organizations,
strives to make use of a proper form and structure for
management of its integrated system of HSE according to
its interests, limitations, operating nature, strengths and
the like.
Planning and strategic management are the most
important pillars of management systems in an
organization; therefore, for better management of HSE
system in every organization, planning and strategic
management can have a positive effectiveness over
control of technical and non-technical parameters of the
system at all levels and in final results and estimates of
the organization [9].
The matrix of weaknesses, opportunities and
threats is one of the famous models of planning and
strategic management. SWOT is a regulated analysis for
identification of internal factors (weaknesses and
strengths) and external factors (opportunities and threats)
of every company and organization and iscapable of
presenting and codifying a strategy that establishes the
best compliance and interaction among these factors. In
this model it is attempted to codify and implement proper
strategies in order to use the opportunities and prepare for
removing the threats according to the strengths and
weaknesses within the system by identifying the
environmental trends of a system, recognition of threats
and opportunities of the external environment and also
recognition of the strengths and weaknesses of the
internal environment. According to this view, this model
is a strategy that maximizes the strengths and
opportunities and minimizes the weaknesses and threats
[7].
CONCEPT OF STRATEGIC MANAGEMENT
Management and strategic management can be
known as a group process to determine the strategies for
survival and growth of the organization according to a
deep understanding of mission and external and internal
factors. Recognition of environmental environments and
selection of proper strategies according to the capabilities
and weaknesses of very organization can be effective in
coordination of that organization with environmental
conditions [8].

1
Corresponding author
 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…
MAIN MODEL OF STRATEGIC
MANAGEMENT [4]
Strategic management is constituted of four basic
elements:
Environmental investigation
Environmental investigation refers to
monitoring, evaluation and publication of the data related
to internal and external environments of the organization
among the key employees of the company. External
environment includes variables (opportunities and threats)
that are outside the organization and outside the
continuous control area of senior management of the
organization.
Internal environment of a company includes variables
(strengths and weaknesses) that exist inside the
organization and are usually in the continuous and long-
term control area of senior managers.
Strategy formulation
Strategy formulation refers to the designing of
long-term plans for effective management of
opportunities and environmental threats and investigation
Diagram 1: Basic elements of the strategic management process
Evaluation and Strategy
control implementation
RESEARCH METHODOLOGY
Using the SWOT model for strategy formulation
for strategic management of HSE system (which is the
main goal of this study) is one of the basic tools of doing
this study based on David's model. In this regard in this
study primarily in order to use the views of the experts
and prepare the current situation of HSE system in Ahvaz
Tubing Company and determination of the most
important internal factors and external factors effective in
the planning and strategic management of the system and
their prioritization, the questionnaire was used. It can be
said that all variables related to internal factors and some
variables of the external factors are the basis of
formulation of questions of the questionnaire. In order to
determine the possibility or lack of possibility of
Indian J.Sci.Res. 7 (1): 136-144, 2014
of strengths and weaknesses of the company (all stages of
doing this study are aimed at conducting this stage).
Strategy implementation
Strategy implementation is a process through
which strategies and policies are considered and
implemented in all stages of preparation of plans, budgets
and procedures.
Evaluation and control
Control and evaluation is a process by which the
activities and results of company's performance are
monitored so as to be able to compare the real
performance of the company with the optimal
performance.
In diagram 1, the model of strategic management
is illustrated. This model includes a feedback/learning
process in which the data obtained from every element of
the process is used as an adjustment for each of the
previous elements. The same time the company or firm
codifies and implements the strategies, it must review and
revise the former decisions and take measures so as to
correct them.
Strategy Environmental
formulation investigation
prioritization of internal factors, the freedman test with
the Chi-square statistic has been utilized. After that
according to the rate of rank, priority and type of every
factor (S, W) steps were taken for listing the factors in the
evaluation table of internal factors. In order to investigate
external factors (O,T) also according to the views of
experts and specialists and by means of the studies and
projects related to the subject and also inspiration by
some questions of the questionnaire the external variables
were prepared and listed and regulated in the evaluation
table of external factors. After that, the data obtained was
transferred to the SWOT table for strategy formulation
and eventually also for the strategies formulated for
prioritization, the table input was evaluated based on
QSPM [7].
 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

In Table 1: the visual plan of SWOT matrix has been presented

weaknesses ‫ ـ‬W strengths ‫ ـ‬S Matrix SWOT
list the weaknesses List the strengths
strategiesWO strategiesSO lists ‫ ـ‬O
destroy the try to utilize the list the opportunities
weaknesses by opportunities by
making use of making use of
opportunities strengths
strategiesWT strategiesST threats ‫ ـ‬T
reduce the use the strengths in List the threats
weaknesses and order to avoid the
avoid threats threats
Source: T.L Wheelen and J.D Huger, “Internal Factor Analysis Summery (IFAS).”Copyright 1991by Wheelen and Hunger
Associates.
Matrix houses of SO, WT, ST, WT determine responders in this study the Freedman test with the Chi-
strategies and the company can select the most square statistic was used. The results obtained confirm the
appropriate strategy and evaluate and formulate a proper fact that due to the rejection of the H0 hypothesis based on
strategy for itself. the equal priority of the variables, there is a difference
among the factors in terms of priority; thus, in table no.2
FINDINGS
(IFE Matrix) all variables have been inserted and scored
In order to determine the priority of internal in terms of priority. Table no.3 is also EFE Matrix in
factors effective in HSE system, in the internal which the external factors have been determined and
environment (strengths and weaknesses) according to the scored.
Table 2: IFE Matrix
Internal factors
Score Rank Weight Row
Strengths
0.2 4 0.05 Acceptance of scientific communications with scientific assemblies 1
0.2 4 0.05 Doing period examinations of the personnel 2
0.2 4 0.05 Adequacy of control plans of the system 3
0.12 3 0.04 Existence of committees related to the system 4
0.18 3 0.06 Quality of the risk management 5
0.15 3 0.05 Increase of safety and health of employees 6
0.15 3 0.05 Following the related regulations 7
0.09 3 0.03 Preparation of the presence of personnel in emergencies 8
0.06 2 0.03 Interaction and communication with related assemblies 9
0.04 2 0.02 Developing R&D 10
0.04 2 0.02 Flexibility of the system in encountering the changes 11
0.02 1 0.02 Using modern technology in the company 12
0.02 1 0.02 Knowledge acceptability and related corrections 13
0.02 1 0.02 Presence of related specialists 14

Point Rank Weight Row

0.24 4 0.06 Lack of adequacy of attention to ergonomics issues by establishment of the system 1
0.16 4 0.04 Lack of enough information regarding the performance of the system 2
0.2 4 0.05 Change of coefficients of HSE indexes by outsourcing the activities 3
0.1 2 0.05 Lack of formulation of proper methods in order to receive related suggestions and recommendations 4
0.1 2 0.05 Lack of allocation of enough resources 5
0.1 2 0.05 Lack of adequacy of educational plans in order to change the data into knowledge 6
0.1 2 0.05 Lack of deployment of punishment and encouragement 7
0.1 2 0.05 Lack of adequacy of specialists related to the system 8
0.1 2 0.03 Lack of attention to the considerations of the change management 9
Lack of deployment of necessary arrangements for evaluation of the change in approach of the
0.08 2 0.04 10
customers
Lack of assessment of performance of rivals and comparison with the internal performance of the
0.02 1 0.02 11
company
2.79 - 1 Sum of squares of internal factors

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 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

Table 3: EFE Matrix

Score Rank Weight Opportunities Row

0.08 4 0.02 The possibility of change in the approach of customers according to the performance of the system 1
0.28 4 0.07 The needs of the beneficiary groups and attention to that 2
0.04 2 0.02 Possibility of establishing confidence-building communications among the neighbors 3
0.016 4 0.04 The possibility of partnership with internal and external co-family producers 4
Providers (encouragement of the providers to presentation of high quality product due to existence of
0.12 4 0.03 5
HSE requirements
Customers (establishment of strong work relations with the company due to the existence of HSE
0.12 4 0.03 6
requirements)
Local emergency services (cooperation with the company in determining advanced HSE services and
0.06 3 0.02 7
facilities)
0.06 3 0.02 Holding of national and international seminars and conferences related to the HSE topics 8
The possibility of increasing the competitive power of the company through HSE performance at the
0.06 3 0.02 9
national level
The possibility of using international tools for improvement of the workforce conditions such as 5S
0.06 3 0.02 10
nationwide
0.04 2 0.02 Insurers (possibility of having premium discounts with covering of risk by the insurers 11
0.12 3 0.04 Non-governmental pressure groups (supporting the organization in improving HSE issues) 12
0.12 4 0.03 Existence of standards related to the system 13
Establishment of the relationship between scientific centers and industries for establishment and
0.06 3 0.02 14
exchange of data
0.15 0.05 The possibility of increasing the credit of the country in terms of performance among the neighbors 15
0.06 2 0.03 Having tax breaks with optimal performance 14
0.03 3 0.01 The media (creation of good spirit by the media due to good performances of the company) 15
0.02 2 0.01 Necessity of insuring all those employed nationwide 16
0.12 3 0.04 Growth of HSE system culture in national and international associations 17
‫امتياز‬ ‫رتبه‬ ‫وزن‬ Threats
0.24 4 0.06 Active presence of leading competitors in acting by HSE requirements in the tube market 1
Establishment of regulations and standards of health and safety adjusted to the international standards by
0.08 4 0.02 2
the state
0.12 3 0.04 Lack of distribution of financial facilities by the state for the HSE system of every organization 3
Lack of formation of specialized conferences for comparison and ranking of the performance of the
0.02 2 0.01 4
system among co-family producers
0.03 3 0.01 Lack of right implementation of HSE management system in the country 5
Lack of existence of legal requirement for punishment and encouragement in compliance with the HSE
0.15 3 0.05 6
principles nationwide
0.16 4 0.04 Technology changes 7
0.08 4 0.02 Propagation of culture of outsourcing of activities in the country 8
0.04 4 0.01 The climactic conditions present in the region and impact on the performance of the system 9
0.04 2 0.02 Pressures of organizations supporting issues related to the system (e.g. increasing efficiency, etc,) 10
0.09 3 0.03 Delay in implementation of HSE plans nationwide 11
0.12 3 0.04 Lack of proper balance in organizational structure and HSE system nationwide 12
0.02 2 0.01 Lack of adequate attention to the education plan of ergonomics issues at recruitment in the country 13
The media (creation of bad public mentality and loss of work opportunities in case of inaccurate
0.09 3 0.03 14
performance)
0.04 2 0.02 Insurers (possibility of presenting heavy insurances for hedging) 15
Local emergency services (validation of fine and punishments due to inaccurate performance and exact
0.02 2 0.01 16
monitoring and monitoring over HSE activities of the company)
0.03 3 0.01 Non-governmental pressure groups (measures against lack of compliance of the company with HSE) 17
0.06 3 0.02 The providers (encouragement for presentation of low quality product due to lack of HSE requirements) 18
0.03 3 0.01 Customers (selection of other alternative companies with good HSE record) 19
3.22 - 1 Sum of scores of external factors

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 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…
Determining the strategic status of the company
As in the framework of strategic management
and formation of strategies, it has been attempted to
present the best possible strategies according to the
current situation, therefore it is desired to primarily
determine the strategic situation and position of the
company so as to take actions with more might regarding
formulation of strategies and eventually take steps
regarding prioritization of strategies [7].
Based on David's model in the method of
provision of IFE and EFE Matrixes, regardless of the
number of factors that is contained in IFE and EFE
Matrixes, the sum of final scores of each of these matrixes
will be between 1 to 4 and their mean will be 2,5.
If the final score of participation in the IFE
Matrix is lower than 2,5, it means that in terms of internal
factors the organization has a weakness and if this score is
over 2, 5, it means that in terms of internal factors it has
strength [9]. According to the results obtained and using
table no. 2 which is the table of evaluation of internal
factors, the sum of scores of internal factors of the
company is 2, 79 and this means that in terms of internal
factors the company is at an average state but isn't
satisfactory.
Also, the sums of final score of EFE Matrix for
the company never reaches more than 4 and never lower
than 1 either. Then the mean of this sum is 2,5. If this
number reaches 4, it means that the organization greatly
reacts to the factors that cause threat and opportunity. In
other words, in its strategies the company uses the
available opportunities successfully and reaches the effect
of factors that cause threat to the lowest rate possible.
Number 1 expresses the fact that in formulation of its
strategies the company hasn't been able to utilize the
factors that cause opportunity or position or avoid the
factors that lead to threat [9].
Based on the results obtained and by means of
the table no. 3, sum of scores of external factors of the
company is 3,22 and it means that in terms of external
factors the company is in an optimal state and it signifies
the company's good reaction to factors that lead to threat
or opportunity; to be precise, the company uses the
available opportunities well and avoids the threats.
Indian J.Sci.Res. 7 (1): 136-144, 2014
DRAWING THE DIAGRAM OF STRATEGIC
STATUS OF THE COMPANY
The explanations of the previous section are
based on the fact that the number 4 will be complete for
internal factors of strength and complete for external
factors of opportunity; also, number1 regarding internal
factors will state absolute weakness and regarding
external factors absolute threat; thus, it can be concluded
that the scores between the numbers 2 and 3 can express
average conditions for each of the factors. Using this
discussion, steps can be taken for drawing of a matrix for
more complete understanding of this discussion and
determination of the strategic status of the company.
In order to draw the diagram of strategic
situation of the company, we act as below:
1. We call the X-axis as the external factors and divide
the axis to four equal sections; based on David's
model number 1 expresses absolute threat and
number 4 expresses complete opportunity; we call the
range of numbers 2 and 3 average conditions and also
determine the mean which is the number 2,5.
2. We call the Y-axis as the internal factors and divide
the axis to four equal sections; based on David's
model number 1 expresses absolute weakness and
number 4 expresses complete strength; we call the
range of numbers 2 and 3 average conditions and also
determine the mean which is the number 2,5.
3. We divide the coordinate by connection of the 4
points and connection of the mean points into 4
regions and based on the position of each area in the
coordinate (regarding placement in the range of
external and internal factors), the regions OS, ST,
WO, WT are distinguishable.
4. Based on the findings obtained from IFE and EFE
Matrixes (tables no. 2 and 3), we determine the sum
of scores of external factors on the X-axis and sum of
scores of internal factors on the Y-axis and depict
their commissure in the coordinate. Depending on in
which region the commissure of external and internal
factors scores is placed the strategic situation of the
company is determined.
Diagram no. 2- shows the strategic situation of
the company in the OS region.
 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…
Diagram no. 2- determining the strategic situation of HSE system
Internal
factors(Y)
3 S
2.
2.
2
W W
1 2 2.5
As is clear also in diagram no.2, the HSE system
situation of the company is in the OS section and this
issue demands the company's need for implementation of
strategies related to the same house in SWOT matrix. For
this purpose, for strategic management of HSE system,
the company must use the external opportunities in the
best way or in other words actualize it by means of its
strengths. Thus, by means of the contrast of external
factors and internal factors in the SWOT matrix, the best
strategies that can be formulated for strategic
management of HSE system, were selected.
FORMULATED STRATEGIES OF OS (OFFENSIVE
STRATEGIES)
OS strategies which are also called offensive
strategies are the result of confluence of strengths of the
company and the opportunities available and effective in
the system. These strategies are formulated based on
investigation of ways through which the company can go
through for utilization of its strengths in order to benefit
the opportunities [7].
The most significant offensive strategies that can
be formulated for strategic management of HSE system of
the company include:
1. Change in the attitude of the customers with optimal
performances of HSE system and assistance of the
research and development unit (R & D) and
Indian J.Sci.Res. 7 (1): 136-144, 2014
S
External factors
(X)
3 3.22 4
participation in conferences and establishment of
interactions with relevant associations for this
purpose.
2. Attempts for providing and meeting of the needs of
beneficiary groups with the help of R & D and by
means of modern technologies
3. Increase of partnership and establishment of
confidence-building communications among the
neighbors
4. Growing partnership with internal and external co-
family producers and accordance with them in the
performance method of the system
5. Encouragement of providers for presentation of high
quality products through exertion of HSE system
requirements
6. Encouragement of customers for establishing strong
work relations with the company though exertion of
HSE system requirements
7. Effort for growing presentation of emergency local
services and increase of credit among the neighbors
8. Necessity of presence and participation of specialists
in scientific associations, conferences and seminars
related to HSE topics
9. Increase of competitive power and advantage of the
company in the tube market through the optimal
method of performance of the HSE system
10. Using the international tools for improvement of the
workforce
 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

11. Encouragement of non-governmental pressure groups formulation of strategies it is attempted to present the best
for supporting the company in the society strategies possible, thus it is appropriate to take steps
12. Establishment and increase of scientific regarding their prioritization after formulation of the
communications with scientific centers and industries related strategies, so that actions are taken regarding their
for establishment and contrast of information and implementation, based on the rate of priority and
informing of the performance of the system and preference of each one.
raising the level of knowledge and system culture in
QSPM is a table whose column is constituted by
the company and society
internal and external factors and all determined strategies
13. Following the regulations and requirements related to
are placed at its row. In table 4, visual plan of QSPM is
the system in order to have tax breaks
presented.
14. Participation in HSE culture distribution in national
and international associations with the custodians This matrix is provided for prioritization of the
15. Improvement and increase of safety and health of the determined strategies. In fact, this matrix states which one
personnel through adequacy of HSE plans and of the formulated strategies has the possibility of
presentation of insurance services widely implementation according to the available conditions, and
in other words, which strategy is preferred to other
PRIORITIZATION OF THE STRATEGIES BY strategies.
MEANS OF QUANTITATIVE STRATEGIC
PLANNING MATRIX (QSPM) All offensive strategies (OS) formulated in the
QSPM were evaluated and based on the results and the
As the implementation of all the strategies above score obtained from this matrix, the strategies have been
won't be applicable at the same time and in a certain range presented in order of priority and by mentioning the score
and as in the framework of strategic management and in the table no.5.
Table 4: Visual plan of QSPM
Types of applicable strategies
Nth strategy Second strategy First strategy
Coefficient Main factors
Score of Score of Score of
Sum of scores Sum of scores Sum of scores
attraction attraction attraction
Main internal
factors
Sum of internal
1 factors
Main external
factors
Sum of external
1 factors

0-8 0-8 0-8 Total sum of

2 strategy score

Table 5: Prioritization of offensive strategies (OS) for strategic management of the system by means of QSPM matrix

Score Offensive Strategies Priority

6.07 Providing and meeting of the beneficiary groups with the help of R & D unit and using modern technologies 1

4.91 Using the international tools for improvement of the workforce 2

4.53 Participation in HSE culture distribution in national and international associations with the custodians 3

Improvement and increase of safety and health of the personnel through adequacy of HSE plans and presentation of
4.52 4
insurance services widely

4.38 Encouragement of non-governmental pressure groups for supporting the company in the society 5

Encouragement of customers for establishing strong work relations with the company though exertion of HSE system
4.17 6
requirements

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 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

Increase of competitive power and advantage of the company in the tube market through the optimal method of
4.13 7
performance of the HSE system
Change in the approach of the customers with proper performances of the HSE system and assistance of the research
3.93 and development unit (R & D) and participation in conferences and establishment of interactions with related 8
associations for this purpose
3.70 Following the regulations and requirements related to the system in order to have tax breaks 9

3.68 Encouragement of providers for presentation of high quality products through exertion of HSE system requirements 10
Establishment and increase of scientific communications with scientific centers and industries for establishment and
3.67 contrast of information and informing of the performance of the system and raising the level of knowledge and system 11
culture in the company and society
3.45 Increase of partnership and establishment of confidence-building communications among the neighbors 12

3.17 Effort for growing presentation of emergency local services and increase of credit among the neighbors 13
Necessity of presence and participation of specialists in scientific associations, conferences and seminars related to
3.17 14
HSE topics
Growing partnership with internal and external co-family producers and accordance with them in the performance
3.11 15
method of the system

DISCUSSION AND CONCLUSION
In this study, by numerous studies of the internal
and external environments and determining the factors
effective in every environment on the tubing company for
strategic management of HSE system and by establishing
relationship and contrast of these factors with one another
and determining the best strategies possible and also their
prioritization, it was attempted to take effective steps
regarding the decision-making of experts and decision-
makers of the company for improvement of the current
status of the system and effective strategic management.
By a precise and close observation, it was determined that
the current status of the company is in a proper strategic
position and the best strategy possible for more and more
enhancement of these conditions was recognized to be
"providing and meeting the needs of the beneficiary
groups" that include" shareholders, managers, employees,
customers, providers, media and non-organizational
pressure groups.
For strategic management of this system, the
SWOT management model was used and according to the
passing of all stages related to this method and
recognition of the best strategies, the capability of this
method in the strategic management was proved. It is by
means of this model that for accurate management of
every organization, the managers will have a
comprehensive and reasonable view to all environmental
factors and using this model stops overlooking many of
the factors effective in every system.
One of the most important capabilities of this model in
strategic management of very organization or company is
that it presents the best strategies possible and this
prevents the loss of excessive and management losses of
organizations. Also, it causes every company to try to
overcome its shortcomings by implementing the
Formulated Strategies Beside Its Other Activities.
SUGGESTIONS
Based on the conducted analyses, for strategic
management of HSE system in Ahvaz Tubing Company,
the following cases can be presented as suggestions:
1. Implementation of the formulated strategies based on
the priority and growing attention to the needs of the
beneficiary groups
2. Correction of present management processes using
the current strategic status of the company
3. Investigation of trend of environmental developments
at different time period in order to follow the time
trend and investigation and prediction of different
states of the future and presentation of proper
strategies of that time
4. Investigation and research regarding the application
of different models of SWOT model and comparison
with the results of application of David's model in
this study
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 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

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Indian J.Sci.Res. 7 (1): 136-144, 2014